Jenny Lane Is Considering How Best to Charge Her Clients

question 14

Essay

Jenny Lane is considering how best to charge her clients for her accounting services.She incurs costs of $12 000 in staff costs per month,and expects her business to bill 500 hours per month.She also pays rent of $48 000 per year,and her administrative fixed costs total $8000 per month.Jenny desires a profit of $240 000 per year (not including taxes).
Required:
A.What is the minimum rate Jenny must bill her clients per hour to avoid making a loss?
B.What must Jenny bill her clients per hour in order to earn her target profit?

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Definitions:

Nondiscriminatory Instruments

Tools, measures, or methodologies designed to ensure fairness and impartiality, not influenced by biases against any individual or group.

Special Education Referral

The formal process of identifying and assessing students who may have disabilities to determine their eligibility for special education services.

Identification Process

The systematic procedure used to recognize and categorize individuals or items based on specific traits or characteristics.

RTI

Response to Intervention, a multi-tier approach to the early identification and support of students with learning and behavior needs.